As a rule of thumb, I'm hesitant to lend friends huge amounts of money as well as borrow from them. In fact, even if I owe a pal $3 for a cup of latte, I insist on paying her back instantly via PayPal if I don't have the cash lying around. That's because I never want money to be an issue with friends and, as we all know, dollars can definitely be a sensitive topic.
I just came across a really great tip about managing the relationship of friendship and money on Get Rich Slowly. The writer, April Dykman, says she basically had the mentality of expecting "not to be repaid, and only loaned as much as [she] was willing to lose." You know why that's brilliant? If you don't have any expectations of being paid back, there are fewer chances for any resentment to develop between you and your friend.
What are your experiences with mixing money and friendship?